Written evidence submitted by Stena Line Ports Limited (FRE0005)

Background

Stena Line Ports Limited, which is part of Stena AB based in Sweden, owns the Port of Holyhead. Stena Line, which is a separate business area within Stena AB, operates 27 ships on 20 important ferry routes for freight and passengers throughout Northern Europe and also owns 6 ports.

Stena Line operates 6 routes across the Irish Sea, including the route between Holyhead and Dublin, and 4 routes across the North Sea.

Stena Line, as well as providing ferry services, also manages and operates ports and terminals on most of its routes.

In addition to the Port of Holyhead, a subsidiary of Stena Line Ports Limited is the statutory port authority at Loch Ryan Port and a company which is 50% owned by Stena Line Ports Limited is the statutory harbour authority for Fishguard Port.

Holyhead Port

Holyhead Port is the only 24 hour deepwater port in Wales and is the United Kingdom’s second largest Ro/Ro port, handling approximately 550,000 freight units and 2 million passenger movements annually.

At present the Port’s primary function is ferry traffic to/from the Republic of Ireland, however in recent years it has become a growing cruise destination whereby last year over 50 cruises vessels called into the Port.

The Port has already attracted businesses to take up occupation of some of the industrial units located within it. The rapidly increasing marine renewable energy industry forming in the Irish Sea and around Anglesey, comprising tidal turbines and offshore wind, and also the possible nuclear power plant planned at Wylfa, provides an opportunity for the Port. There is therefore the potential for Holyhead Port and the wider community to promote investment and development of the renewable energy sector and to support investors and their supply chains to secure long-term economic growth for the area.

Holyhead Port is the major employer on the Island of Anglesey, responsible for the direct employment of 25% of the local workforce and providing indirect employment elsewhere on Anglesey. It is located in an area that has limited employment prospects and arguably an area of the country that is financially challenged.

The benefit of Freeport status for Holyhead

Granting Holyhead Freeport status would allow the port to grow and develop, enabling it to attract a more diverse international customer base; it would improve the attractiveness to international import/export operators that would also attract investments to facilitate port development; allowing it to provide the necessary services and berthing facilities that would bring a broader scope of vessels types and an increase of passenger cruise traffic.

Such increased traffic would create greater prosperity for the region through direct and indirect employment; it would add value to the Port, the locality, the North Wales region and UK economy. In addition, such status would also increase the attractiveness for businesses within the port limits, particularly marine connected business as well as providing a more economical place for business that sectors such as those in the sustainability space require to develop their business. There is also of course little doubt that any new business attracted to a future Holyhead Port Freeport Area would also bring benefit to the existing ferry businesses.

The present business case for developing Holyhead is focused on the addition of multi- user berthing space, including capacity for the largest cruise vessels; this is a significant investment that is only attractive if it is feasible to attract greater cargo volumes other than Ro/Ro scope. The Freeport status could potentially create that attractiveness.

To facilitate any potential future development Holyhead Port has already submitted applications for a marine licence and Harbour Revision Order to authorise land reclamation to create approximately 9ha of new quay storage and handling space together with two new berths for vessels. It should be noted that the proposed expansion plans obviously aims to create additional quay side space which may well suitable for some Freeport work.

It should however be highlighted that this additional reclaimed valuable quay wall space may not be enough to carry out significant ‘Freeport’ work so therefore we suggest that thought be given to granting industrial areas close to the port a ‘Free Trade‘ status which in turn would compliment a Ports ‘Freeport’ status. The underutilised Parc Cybi Industrial Site located approximately one mile from the Port of Holyhead might well be a perfect example of this.

Issues for consideration

A concern that Stena Line Ports Limited would have in relation to the Freeport bidding process is how the UK Government intends to ensure that the process does not distort the existing competitive market within the UK. For example, should Liverpool Port gain Freeport status and Holyhead not there may be a danger that businesses that might have located to Holyhead might well gravitate to Liverpool.

We would also like to see Welsh Government, not only ensure that the bidding process is fair between Welsh Ports, but also makes sure that Welsh ports are not disadvantaged byt nearby English Ports. Conclusion In conclusion Stena Line Ports Limited is supportive of the UK Government’s Freeport aspirations but as yet are not yet in possession of the full facts on how these Freeports will actually work on the ground.

As the Committee is already aware Stena Line has already voiced its concerns over the implications of Brexit physical checks at the border and the potential that such interventions will significantly impact of traffic flows to / from the UK. We firmly believe that customs controls for both Brexit and any potential ‘Freeport’ checks should as far as possible be handled digitally with physical intervention kept to a minimum.

April 2020